Series 7 practice questionmediumMargin Accounts 5
A customer buys $8,000 of stock in a new margin account. Under Regulation T, the initial deposit requirement is:
- A$2,000
- B$2,400
- C$8,000
- D$4,000✓ Correct answer
Explanation
Why D — $4,000
Regulation T requires 50% initial margin for most equity securities purchased in a margin account. A $8,000 purchase therefore requires a $4,000 deposit.
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